Rivian’s Q3 Results: A Mixed Bag Amid Supply Chain Woes
Electric vehicle maker Rivian’s third-quarter revenue fell short of expectations, while its earnings loss widened due to a supplier parts issue. Despite this, the company maintained its full-year delivery forecast and anticipates a modest gross profit in the fourth quarter.
Revenue Misses the Mark
Rivian reported revenue of $874 million, below the expected $980 million, and a significant drop from the $1.34 billion generated last year. The company’s adjusted loss per share was $0.99, exceeding the expected loss of $0.92. Additionally, its adjusted EBITDA loss of $757 million surpassed the anticipated $657.5 million.
Supply Chain Disruption Takes Its Toll
Last month, Rivian disclosed a production disruption due to a shortage of a shared component on the R1 and RCV platforms. This shortage has become more acute in recent weeks and continues to impact production. As a result, Rivian revised its full-year adjusted EBITDA guidance to a loss of $2.82 billion to $2.87 billion, larger than its previous forecast.
Delivery Outlook Remains Steady
Despite the Q3 production and supply chain issues, Rivian reaffirmed its annual delivery outlook of low-single-digit growth, expecting to deliver between 50,500 and 52,000 vehicles. The company also maintained its annual production guidance of 47,000 to 49,000 vehicles.
Cash Cushion Remains Strong
Rivian ended the second quarter with a substantial $7.85 billion in cash and equivalents, providing a comfortable buffer against potential challenges.
Analysts Weigh In
Bank of America analyst John Murphy downgraded Rivian to ‘Neutral’ from ‘Buy,’ citing demand concerns and uncertainty surrounding the new administration. Wedbush’s Dan Ives, however, maintained his ‘Outperform’ rating, acknowledging the road ahead will be bumpy but expressing confidence in Rivian’s long-term vision.
CEO RJ Scaringe’s Perspective
“This quarter, we’ve made progress against our key objectives and seen meaningful progress on our Gen 2 R1 cost structure,” Scaringe said in a statement. “We’re excited about the future and our midsize SUV, R2, which we believe will be a fundamental driver of Rivian’s growth.”
Leave a Reply